The United States and China agreed Monday to suspend the vast majority of tariffs imposed during their recent trade standoff, committing to a 90-day de-escalation while formal negotiations continue.

The agreement was announced in a joint statement following two days of high-level talks in Geneva, where delegations from both governments convened to address mounting economic tensions.

Under the terms of the deal, the U.S. will reduce its reciprocal tariff on Chinese imports to 10 percent, down from the 125 percent level imposed during the height of the trade standoff earlier this year. China will match that move by lowering its own tariff on U.S. goods to 10 percent, also from 125 percent. Beijing also agreed to suspend non-tariff countermeasures that had been enacted since early April.

A separate 20 percent tariff the U.S. imposed over China’s role in supplying illicit drug manufacturers with key ingredients for fentanyl will remain in place.

Both sides described the moves as initial steps toward a more “sustainable, long-term, and mutually beneficial” trade relationship. They pledged to continue talks through a newly created bilateral mechanism. Chinese Vice Premier He Lifeng will lead Beijing’s delegation, while Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will represent the United States.

“The Parties recognize the importance of their bilateral economic and trade relationship to both countries and the global economy,” the statement said, adding that discussions would proceed “in the spirit of mutual opening, continued communication, cooperation, and mutual respect.”